An Egyptian investor has signed a deal to back an early-stage investment into a Nigeria-based financial services technology company- sealing the first deal in the country. The company is part-owned by Google.
Cairo Angels has injected an undisclosed amount into CredPal, investing as a new player.
The investor is structuring the deal through Cairo Angels Syndicate Fund (CASF), which is targeting $5 million at final close.
The company is being backed based on growth prospects, with buy now, pay later (BNPL) having proven to be a successful business model, according to Cairo Angels.
Cairo Angels is also attracted to the company’s strong management team, which is led by co-founder and chief executive officer (CEO) Fehintolu Olaogun.
‘’Fehintolu and Olorunfemi have built an incredible FinTech platform that provides credit to thousands of underserved individuals and businesses in Africa and will be expanding rapidly to other key markets, including Egypt,’’ said Aly El Shalakany, CEO at Cairo Angels. ‘’BNPL has proven to be a successful business model that is a compelling alternative to traditional forms of consumer credit, especially in emerging and frontier markets where credit card penetration is very low and usually unavailable to the masses.”
Google first backed CredPal in 2021, injecting an undisclosed amount into the company. The US-based technology company structured the deal through Google Africa Investment Fund which is sized at $50 million.
Previous investors in the company include Uncovered Fund, First Circle Capital and Greenhouse Capital which first invested in the company earlier in 2022, backing a $15m investment round into CredPal.
Other previous investors in CredPal include Y Combinator and GreenHouse Capital which first invested in the company in 2020, backing $1.5 million seed investment into the company.
Headquartered in Lagos, CredPal software company that provides a BNPL platform for consumers across Nigeria.
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